The Woolworths Ltd (ASX: WOW) share price could be trading cheaply right now. Shares in the Aussie retailer are down 2.27% this year having hit a new 52-week high on 20 February. So, with all the volatility in the market right now, is the Aussie retailer in the buy zone?

Is the Woolworths share price cheap today?

I think there’s a lot to like about Woolworths right now. The group’s supermarket division is going strong as sales have surged in 2020. That continues to underpin a strong business model which is starting to look more strategically aligned by the year.

There is the ailing pubs business that is weighing on the Woolworths share price right now: ALH Group. ALH operates 323 licensed venues and over 537 retail liquor outlets across Australia. That encompasses restaurants, bistros and other establishments. However, the coronavirus pandemic has hit that business hard as restrictions have led to temporary closures.

However, restrictions are starting to ease and things could be looking up for Woolworths and its share price. I think it’s fair that Woolworths’ value has dropped in 2020 as the economic environment has changed. However, I think $35.34 may be a little low for a company that has traded as high as $43.96 per share in mid-February.

But Woolworths is trading roughly on par with the Coles Group Ltd (ASX: COL) share price in 2020. That indicates to me that its supermarket performance is being valued similarly to its peers. If we compare conglomerate to conglomerate, the Wesfarmers Ltd (ASX: WES) share price is down 2.49% this year. 

If we assume the market is correctly pricing in the current economy, then the Woolworths share price is trading in line with its peers. I think if restrictions continue to ease and Woolworths’ pubs business bounces back quickly, that could make the current $35.34 valuation look cheap.

Foolish takeaway

The Woolworths share price has been on a rollercoaster in 2020. I think the company could be undervalued right now but only if restrictions continue to beat expectations. I’m not willing to speculate at the current price given it’s trading roughly in line with its closest peers.

More reading

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In morning trade on Monday the Qantas Airways Limited (ASX: QAN) share price has hit a bit of turbulence.

At the time of writing the airline operator’s shares are down almost 2% to $3.92.

Why is the Qantas share price dropping lower?

This morning the Australian Competition and Consumer Commission (ACCC) announced that it is continuing to investigate the airline’s acquisition of a 19.9% stake in Alliance Aviation Services Ltd (ASX: AQZ).

The competition watchdog notes that Qantas acquired the stake last year, becoming Alliance’s single biggest shareholder.

This led to the ACCC issuing a statement of issues, which set out its competition concerns with the minority stake.

In response to queries by various stakeholders, this morning the ACCC provided the market with an update on its investigation.

ACCC Chair Rod Sims commented: “Qantas’ decision to complete the acquisition of the 19.9 per cent stake in Alliance without first seeking ACCC clearance means this is an enforcement investigation rather than a standard merger review.”

“The Australian aviation industry remains highly concentrated and it is crucial that competition provided by smaller airlines is maintained long-term,” he added.

As such, the competition watchdog is looking very closely at Qantas’ shareholding.

Mr Sims explained: “The ACCC has been closely scrutinising the effects of the acquisition of this shareholding by Qantas. Acquiring a strategic stake in a close competitor in such a concentrated market raises clear competition concerns.”

What now?

The ACCC’s investigation will now focus on the competitive dynamics between Qantas and Alliance. It will examine whether the stake affects Alliance’s ability to raise funds, consider takeovers, or participate in commercial ventures.

It will also look to see whether Qantas is attempting to exert influence on Alliance’s decision-making or operations.

“We will consider enforcement action if there is evidence that the Qantas shareholding is compromising Alliance’s ability to be a strong competitor to Qantas, now and in the future,” Mr Sims added.

The ACCC also revealed that it isn’t keen on Qantas increasing its stake further, as it has suggested it plans to do.

 “Our current view is that any further increase in Qantas’ stake in Alliance is very likely to raise significant competition concerns under the Competition and Consumer Act,” Mr Sims concluded.

More reading

• Why ASX 200 travel shares are soaring higher today
• ASX 200 rallies hard, no longer in bear territory
• The ASX 200 just hit an 11-week high. Here are 3 reasons we might be in overvalued territory
• The one sector that could experience a V-shape COVID-19 recovery
• Could low oil prices and domestic flights make the Qantas share price a buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX is a great place to invest to boost your income with very reliable dividend shares.

Not every ASX share with a high dividend yield is going to be a very reliable dividend share to buy.

In my opinion, a quality dividend share is one that is able to maintain, and hopefully increase, the dividend every year including through economic issues. The coronavirus is a unique, horrible situation. Many dividend shares have cut their dividends like National Australia Bank Ltd (ASX: NAB) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

Here are three very reliable dividend shares to buy for income:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) 

I think that Soul Patts is the best option on the ASX for dividends.

It’s an investment conglomerate that’s invested in a variety of businesses in different industries such as TPG Telecom Ltd (ASX: TPM), Brickworks Limited (ASX: BKW), Australian Pharmaceutical Industries Ltd (ASX: API) and Clover Corporation Limited (ASX: CLV).

It has been going for over a century and is steadily increasing its diversification in its investments. Its latest forays include retirement living and perhaps data centres.

Soul Patts is a very reliable dividend share. It has grown its dividend every year since 2000. It has also paid a dividend every in its listing in the early 1900s. Soul Patts currently offers a grossed-up dividend yield of 4.5%.

APA Group (ASX: APA) 

APA is my favourite infrastructure dividend idea. Sydney Airport and Transurban Group (ASX: TCL) are more popular but I think APA is more defensive.

It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets worth more than $21 billion and delivers half the nation’s natural gas usage.

I think APA Group is a very reliable dividend share. The energy giant funds its distribution from its annual cashflow. It continues to invest in new opportunities, which will hopefully increase future cashflow and therefore fund even higher distributions.

APA has grown its distribution every year for a decade and a half. It currently offers a distribution yield of 4.3%.

Rural Funds Group (ASX: RFF)

Rural Funds is a real estate investment trust (REIT) which owns a variety of farm types including cattle, cotton, almonds, macadamias and vineyards.

All of its farms have rental indexation built into the contracts. Those increases are linked to either a fixed 2.5% increase, or CPI inflation, plus market reviews. This is a large reason why management think the distribution can keep growing by 4% per annum.

Currently the REIT is also investing in productivity improvements at its farms. This boosts the rental potential and value of the farm.

I think Rural Funds is a very reliable dividend share. It has increased its distribution each year since it started paying one several years ago. It currently offers a FY21 distribution yield of 5.6%.

Foolish takeaway

In my opinion, each of these income ideas are very reliable dividend shares. That’s why I already Rural Funds and Soul Patts in my portfolio. APA is a great option too, I just don’t think it looks as cheap as Soul Patts.

More reading

• Got $50,000 to invest for income? Pick these 5 ASX dividend shares
• Beat low interest rates with these ASX dividend shares
• How to make $1,000 a month in dividends
• 3 top ASX dividend shares to buy this June
• What would $50,000 invested in the ASX 200 a decade ago be worth today?

Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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